1. DAKTRONICS LEAN JOURNEY

2. DAKTRONICS VISION To be the WORLD LEADER at informing and entertaining people through dynamic audio-visual communication systems.

3. WORLDWIDE LED VIDEO DISPLAY MARKET SHARE Source: HIS iSuppli Corporation – Signage and Professional Displays 2012

5. DOMESTIC OFFICES

7. DAKTRONICS OVERVIEW

8. ORGANIZATION

9. DAKTRONICS VISION STATEMENT To be the World Leader at informing and entertaining audiences through dynamic audio-visual communication systems. 1.Be the industry leader in revenues in all of our businesses 2.Be the industry leader in providing value to our customers. 3.Be the industry leader in customer satisfaction. 4.Be the industry leader in operational excellence. DAKTRONICS MISSION STATEMENT Deliver industry leading value to our Customers. By engaging our Employees through challenging and rewarding opportunities Developing strategic partnerships with our Suppliers Leveraging our strengths in Product Innovation, Manufacturing, and Service Contributing to the betterment of our Communities Generating an attractive return for our Investors DAKTRONICS OBJECTIVES WHERE DOES LEAN FIT IN?

10. OBJECTIVE #4 Be the industry leader in operational excellence. Drive continuous improvement in productivity company wide by embracing and implementing lean principles - Elimination of waste through value streams alignment and process simplification - Continuous improvement of quality and reliability - Problem solving - analyze thoroughly, implement quickly Support growth with resources freed up via lean efforts Effective product life cycle management

11. WHAT IS LEAN? Lean is a way of thinking and acting for an entire organization. Lean applies to every business and every process.

12. WHAT IS LEAN?

13. LEAN MISSION STATEMENT To add value to all stakeholders by systematically driving sustainable continuous improvement activities that support key business objectives.

14. WHAT IS THE LEAN ORGANIZATION? A team of Daktronics employees trained to help others implement Lean tools and philosophies.

15. ACHIEVING THE MISSION - STRUCTURE

16. DAKTRONICS LEAN ORGANIZATION Organize and provide Lean training through coaching, book studies, video sessions, gemba walks, coaching, and webinars Provide assistance with creating a strategic direction for Lean deployment Facilitate continuous improvement i.e., value stream mapping, process mapping, implementation plans Provide leadership and expertise to move continuous improvement efforts forward Generate Lean communications Kaizen leadership and organization Provide standard formats for Lean deployment Internal and external benchmarking Roles and Responsibilities

17. ACHIEVING THE MISSION – THE HOUSE

18. LEAN LEADERSHIP FOCUS Process focused (Flow) »Designing a process to produce results »Maintaining the process »Improving the process Instills discipline in leadership behavior »Lean requires discipline in all employees, especially in leaders Take care of the process and the results will take care of themselves.

19. WHAT IS FLOW? Does this look like flow?

20. 8 WASTES D efects O ver-production W aiting N eglected Talents T ransportation I nventory M otion E xcess Processing

21. SEEING WASTE We need to be able to see waste within the value stream

22. LEAN JOURNEY AT DAKTRONICS *Calendar Years

23. LEAN JOURNEY AT DAKTRONICS *Calendar Years

24. OUR LEAN JOURNEY PURPOSE PROCESSPEOPLE (Tools) (Social) MANAGEMENT

25. CULTURE OF LEAN AT DAKTRONICS

26. SO WHAT IS LEAN PROJECT MANAGEMENT ANYWAY? Lean is a way of thinking and acting Lean Project Management is not a specific methodology but incorporates lean concepts in your current process to reduce waste. Waterfall, Agile etc. Look for non value added activities

27. LEAN PROJECT MANAGEMENT MEANS… The right amount of structure and process to be the most efficient Some factors that influence Lean Project Management: Project Size Larger projects often need more structure and methodology Smaller projects can often take a less formal approach Impact Higher the impact or risk dictates process requirements Stakeholders Large government project with many stakeholders may require heavy process and documentation Small internal process you may be able to collaborate and just get the work done. Every company and project lends itself differently to lean practices.

28. FORGET THE COOKIE CUTTER APPROACH Project theory and reality are quite different There is no one method or approach that guarantees success. Each project should be managed on a case by case basis

29. LEAN PROJECT MANAGEMENT AT DAKTRONICS Communication Daily Standup’s (Scrums) Time boxed Fosters collaboration Same story Decisions made quickly Encourages self-organization No one leader, equal voice Greatly reduces email traffic Can be incorporated in most projects What did you do yesterday? What will you do today? What obstacles are in your way?

30. LEAN PROJECT MANAGEMENT AT DAKTRONICS Requirements User Stories A way to convey high level requirements from the users point of view. Who what and why in everyday business language Can be first steps to more detailed requirements, or can take flight on their own thorough a collaborative work environment. As a I want to So that As a Project Manager I want to create a SharePoint project site So that my remote team has a place to collaborate

31. LEAN PROJECT MANAGEMENT AT DAKTRONICS Project Planning Work Iterations (Sprints) 2-4 weeks Estimate and focus on just those tasks Visual Boards Work well with Iterations Physical Virtual

32. LEAN PROJECT MANAGEMENT AT DAKTRONICS Retrospectives Similar to Lessons learned, but done at regular intervals throughout the life of the project. Retrospectives help us to check and adjust along the way, and fosters better team dynamics. If working in Sprints, common practice to retrospect at the end of each Sprint.

33. TARGET Successful Project Management is about getting the right work done and delivering value on time and within budget. Being Lean can help you achieve your end goal. Triple Constraint

34. FINAL THOUGHT Don’t do things because it is the Lean way to do things. Do them because it makes processes better and gets you closer to your goals. Remember, Lean is a means to an end. It is not the end.